Thursday, June 28, 2012

6/28/12 - EOD Update

Another one of those zany reversal days. The bulls managed to keep the green count alive and close the market over the 20 day SMA. The 50 day SMA is now at 1340.


5 Min

H/S
The right shoulder continues to play out.

Bear
The alternate option here is that wave 2 is not complete and one more push higher will be required to complete wave c of 2.
Bull
Similarity
Lets refer back to this chart again to see if it may shed some light as to where we are.

Note where I have red a back in November 2011. Notice the McClellan reading at the time (green asterisk) after completing step [1]. The McClellan found support near zero and then chopped sideways while forming b before heading lower to complete [2]. 

Now compare the current situation where I have the green asterisk. The McClellan once again bounced at the zero line and is in the process of completing b. We'll see.
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